The volatility of the crypto market is your best chance to win

After being in an uptrend for eight months, volatility in the crypto markets is heating up.

In less than two weeks, the value of cryptos has fallen by 50%, shaving off $ 1.2 trillion in market capitalization.

(Source: Bloomberg.)

This sudden drop can be frustrating for some investors. But if you have a trading mindset, these times of volatility provide the best opportunities for making gains.

This is because the crypto market is likely to tip over over the next few months as it returns to its previous high.

During this time, traders will have many chances to follow the mantra “buy low, sell high”.

We’ve been through this before

The volatility we are currently witnessing in the crypto markets is not uncommon.

Drops of 20% or more should be expected every three to six months. At least that’s what we’ve witnessed historically.

Since 2017, cryptos have experienced seven major peaks in volatility.

And even when the crypto markets were relatively calm, they still saw much more dramatic changes than US stocks (represented by the Russell 3000 Index in the chart below).

Bloomberg Galaxy Crypto Index vs. Russell 3000

(Source: Bloomberg.)

This makes crypto the best trade for active investors because there are more opportunities to earn by buying and selling.

There is a better way to trade crypto

Identifying the perfect time to buy and sell can be a challenge, even for the most seasoned traders.

Seemingly insignificant aspects of life, such as not getting enough sleep the night before or what you ate for breakfast, can derail your trading strategy.

This is why many successful traders use algorithms that determine entry and exit signals.

Algorithms eliminate many problematic human aspects of trading and are a valuable tool to add to your arsenal.

But let’s face it: not everyone is a computer scientist or mathematician who can create a trading algorithm from scratch.

Traders who want access to a tool that determines buy and sell signals for them will want to check out our special replay of the 4X Stock Accelerator Summit later this week.

In this presentation, Ian King and TradeSmith CEO Keith Kaplan discuss how to maximize your profits while staying ahead of the market roller coaster.

And this trading system works for everything from stocks and mutual funds to exchange-traded funds and commodities – and even cryptocurrencies.

We will have more information for you in the Wednesday edition of Smart profits every day.


Steve fernandez

Research analyst, Strategic fortunes

About Larry Noble

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